Summary Today’s webinar will discuss hedging an escalating trade war and cleaning up the USOU mess. The odds of a full trade agreement with China are almost zero, but a coin flip between escalation and “delay more tariffs to work on a deal.” You don’t have to make money back […]
Retirement Income Options
Retirement Income Options Options includes all stock recs from Sustainable Growth and Dividend Collector. What sets RIO apart is the option selling overlay – covered calls and cash-secured puts – that generates extra income and helps manage equity risk.
Option selling is a professional strategy that takes some getting used to, however, if you are a long-term investor with a contrarian streak who likes to add income to the bottom line, this is THE strategy worth learning.
Before making any options trades, read:
Summary Leverage is a double edged sword that must be wielded carefully. Overextending on leveraged positions can lead to massive portfolio destruction. Wait for likely turning points and scale in slowly. Waiting for an uptrend is the easiest and safest way to use leverage, though has less profit potential, which […]
Summary Hedges are small positions with potential for large offsets in a falling market. We place hedges when markets are overvalued and there is a discernible catalyst to drive prices down – we try to avoid outright speculation. Our current hedging thesis is almost played out and we need to […]
Summary Selling puts this month could be a boon if there is a small correction and volatility. We will want to be aggressive put sellers into the buyback bubble that is blowing into year-end. I am not too keen on buying calls right now, that seems a time for a […]
Summary Antero ahead of winter natural gas demand. SPWR and FSLR on general solar weakness. Couer Mining on gold weakness but new mine upside. AT&T on merger depression but 5G upside. Below find some revisions to the August Cash-secured puts list that are timely. I noted by bold a few […]
Summary I am adding to oil stock positions ahead of this week’s and next week’s earnings. Some of the positions are brand new. Added are Centennial Resource Development, Pioneer Natural Resources and Continental Resources. Because we already have LEAPs to 2020, these new positions are calls to winter 2019. As […]
Summary Use options to build and trim positions for your ebb and flow trading style. I am erring on the side of caution until this market gives back a little. Still very bullish on oil stocks given manipulated supply, rising demand, lack of long-cycle investment and Iran sanctions. You do […]
Summary Call options are up over 60%. Duration is short – only to November. Time to take call profits and look for opportunities to sell puts. Hello, your membership does not give you access to this page. Please become a member or upgrade your membership.
Summary After a mini-correction, the market is warming up again. Maybe it lasts, maybe it doesn’t. Sometimes doing little to nothing, while waiting for existing positions to move or expire (options) is the right thing to do. There are a few new ideas, but not many. That is par for […]
When you see something interesting on the menu that you think might taste great, do you ask a few questions and then try it, or, do you say, “nahhh, I might like it and then I’d want more, so I better not try it.” Options are like that new dish on […]
Oil prices are taking a hit right now as the media and markets are fooled by a narrative that new oil supply is coming onto the market from Saudi Arabia and Russia. That is not the real story. In fact, it’s #fakenews. Good traders took some profits on oil positions […]
Summary The market is in rally mode, likely short-term, there’s very few options to be traded. Sometimes doing little to nothing, while waiting out existing positions is the way to go. There a few new ideas, but not many. Sometimes the market is just too hard. Each month, I will […]
Each month, the week after options expiration, I will post a new set of option trades that you can look to make over the next month. I will focus on: Selling cash-secured puts on stocks that we would like to own and are approaching support. Covered call writing on stocks […]
I am reiterating buying LEAPs on the following energy stock and energy ETF. Read this article to know why oil is going up soon: Oil Price’s Goldilocks MomentOil Price’s Goldilocks Moment Read this article for the explosive reasons why oil migh be headed much higher. President Trump Just Signaled The […]
Before I start, let’s remember our asset allocation approaches and what applies to each of us. From the “Getting Started” report “Intelligent Asset Allocation: Better Returns & Lower Risk.” Hello, your membership does not give you access to this page. Please become a member or upgrade your membership.
Each month at about options expiration I will post a new set of option trades that you can look to make. I will focus on: Selling cash-secured puts on stocks that we would like to own and are approaching support. Covered call writing on stocks that are rallying but hitting […]
This will be very quick before I head out to play poker, which is sort of appropriate for talking about our volatility trade (VXX). Virtually everybody should have made money on this trade. The question to ask if you still own the calls is what now? Do you take the […]
Summary I am selling the February VXX $27 calls for $2.75. This represents a 36% gain in a little over a week. It’s a good trade, but let’s not get greedy, these options move a lot and have a structural disadvantage. I’m essentially playing with house money on the February […]
One of the things that those who are calling for lower oil just don’t understand is that the fracking industry is just not going to flood the market with oil. That means there won’t be this sudden influx of associated gas – gas that comes with oil production. How do […]
This is an add-on to the article on winners and losers in the solar space from tariffs. I am a buyer of SunPower (SPWR) stock for an initial position of about 2% of portfolio value. I am a seller of cash-secured puts designed to increase my position to 4%. I […]